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Tax relief and measures regarding Company income tax (CIT) and Value added tax (VAT) for the fiscal year 2021

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Following the decree Nghị quyết số  406/NQ-UBTVQH15 dated 19/10/2021, below are the tax reliefs for 2021 for companies and corporations registered in Vietnam.

CIT

  • If 2021 turnover is higher than 2019 turnover, your company is not subject to any tax relief.
  • If 2021 turnover is lower than 2019 turnover, 30% off the regular CIT (20%) i.e. 20%*0.7= 14%

VAT

  • For certain industries*, 30% off VAT during November and December 2021 i.e. 10%*0.7= 7%
  • Please note that if you are concerned by this measure, your business must adapt its price i.e. its VAT to 7%

Eligibility regarding penalties for late payment

  • All penalties are canceled the late payment of taxes for the year 2020 and 2021 if the company was in loss during 2020
  • The proper compliance is required in order activate this eligibility 
  • Late interest will be calculated starting 1/1/2022
  • Please be reminded that according the Vietnam Accounting Standards (VAS) 75% of the annual company income tax must be paid before the end of the fiscal year i.e. CIT for 2021 is 100.000USD, 75.000USD or more must be paid before 31/12/2021.

*hotel, transportation, F&B, tourism

 

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